A large industrial portfolio comprised of properties located throughout Mexico is set to trade hands. Mexican industrial real estate investment trust Terrafina has inked a binding agreement for the acquisition of 17 industrial properties and two land reserves. The REIT is set to pay $108 million for the assets. Terrafina is being advised by Prudential Real Estate Investors throughout the process of acquiring the portfolio.

Acquired as part of a bid to gain more high-quality assets and increase the overall value of the REIT’s portfolio, the assets are located in the Mexican cities of San Luis Potosi, Irapuato, Monterrey, Ciudad Juarez and Reynosa. The industrial properties totaling 1.9 million square feet of gross leasable area had an average vacancy rate of less than 10 percent at the time the agreement was signed. All of the in-place leasing agreements at the assets are triple-net leases. The two land reserves add around 4.3 million square feet of space to Terrafina’s portfolio.

Expected to close sometime during the year’s fourth quarter, the transaction will be financed with proceeds from last year’s successful offering completed by Terrafina. According to the press statement announcing the binding agreement, the stabilized cap rate for the acquisition for the next 12 months is 8.3 percent.